Three have advanced to vice president roles at USANA Health Sciences Inc., the nutrition company announced Thursday.

The past month has ushered in several leadership changes at USANA, beginning with the appointment of Kevin Guest as sole CEO. Guest formerly shared the role with Co-CEO Dave Wentz, who stepped down at the end of November. The company then named Jim Brown as President, in addition to his role as Chief Operations Officer, and hired on Walter Noot as Chief Information Officer.

Now, three executive directors have been promoted to vice presidents over their respective areas. Ashley Collins will serve as Vice President of Marketing and PR, Amy Haran as Vice President of Communications, and Howard Gurney as Vice President of Product Development Process.

“I have had the pleasure of working with these proven leaders for many years now and know firsthand their dedication and commitment to our employees, stakeholders, distributors and customers,” said Guest. “These talented and ambitious individuals have been essential in hitting key benchmarks within the company and will continue taking us to the next level of excellence.”

Collins, who has led USANA’s public relations and social media efforts, will now oversee the marketing and digital marketing teams as well. In 16 years with the company, she has contributed to major campaigns and helped to develop key relationships with athletes and celebrities, as well as USANA’s sponsorship of The Dr. Oz Show.

Heading up communications, Haran will draw upon 13 years of experience with the company. Her new responsibilities include leading digital communications for USANA’s 1,300 employees and 400,000 distributors, and providing guidance to the customer service, translation and content creation teams.

Gurney formerly served as executive director of quality systems and regulatory affairs, managing the company’s regulatory team. As vice president, he will continue to oversee these areas while orchestrating a wider effort to streamline the product development process.

Strong salesforce incentives proved to be a significant contributor to USANA’s (USNA—NYSE) positive results for fourth quarter 2014, not only in customer sales but also associate growth. USANA’s revenue was up 22.3 percent at $227.9 million for the quarter, while earnings were $21.3 million, or $1.65 per share, an increase of 17.0 percent, though lower than the Capital IQ Consensus Estimate of $1.92.

Sales incentives introduced in the quarter drove the number of active Associates up 31.7 percent, particularly in the company’s Asia Pacific region, which contributed to a sales surge of 34.1 percent to $163.3 million in the region, compared with $121.8 million for the fourth quarter of the prior year. Net sales also increased by 25.4 percent on a sequential quarter basis.

Full-year results included a profit of $76.6 million, or $5.60 per share, with revenue of $790.5 million, compared with $718.2 million the previous year.

Net earnings for 2014 decreased by 3.0 percent to $76.6 million, compared with $79.0 million in 2013, due primarily to the pricing and compensation plan changes implemented during the third quarter of 2013. Earnings per share for the year increased by 0.7 percent to $5.60, compared with $5.56 in the prior year.

“2014 was another exceptional year for USANA,” said Kevin Guest, USANA’s President. “Our vision as a Company continues to center on improving the overall health and nutrition of individuals and families around the world through our world-class product offering. To further this vision in 2015, we will continue to execute our overall strategy, which focuses on promoting customer loyalty, enjoyment and success with USANA.”

USANA’s full-year outlook for 2015 includes revenue in the range of $850 million to $870 million and earnings between $6.40 to $6.70 per share.

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2014: A Year of Growth

I’m writing this letter from my hotel room in marvelous Rio De Janeiro, home to the 2014 World Congress of the World Federation of Direct Selling Associations. The event has brought together approximately 400 people from companies based around the world, all united for one purpose: supporting the direct selling path of entrepreneurship and the opportunity it presents to people from all walks of life. It also serves as time to reflect on the state of our community today: the challenges we face, the lessons we’ve learned and the opportunities ahead.

There’s no question that direct selling is enjoying a period of growth. Direct selling companies generated combined revenue of $180 billion worldwide in 2013, with the World Congress host country alone reporting 7.2 percent growth. As writer Judith Emmert explores in our cover story, beginning on page 16, more than a dozen U.S. companies have surpassed $500 million in annual revenue this year and are continuing to climb toward the $1 billion peak. During the reporting for the cover story, USANA President Kevin Guest told us, “As we knock on the door of $1 billion, most of our challenges have related to becoming a $1 billion organization before we actually hit that level of sales. This means that we need to think, act and behave like a $1 billion organization before we can become one.”

Here at Direct Selling News, 2014 included a number of significant initiatives designed to support growth throughout direct selling. First and foremost was our groundbreaking survey work conducted with the team at Harris Poll. We began the relationship by commissioning Harris Poll to conduct a survey in the spring answering the question: How prevalent are direct selling products in the United States. (The answer: Very! Two-thirds (66 percent) of adults—an estimated 156 million people—have ever made a purchase from a direct seller. One-third (34 percent) have done so in the past six months.) In late August, we went back to the field with a more in-depth study examining both direct selling consumers and distributors, and we look forward to continuing to bring you more in-depth analysis from this exclusive research. During the year, we also published a special insert in The Wall Street Journal, crafted to communicate the positive attributes and dynamic nature of direct selling with the Journal’s high-level audience, and a special edition during the U.S. Direct Selling Association’s Annual Meeting, highlighting the event’s content and awards.

It was my privilege to join the Direct Selling News team in February, and I look forward to continuing to expand our work as we head into 2015. I could not have asked for a more gracious welcome and am particularly thankful for the continued support and guidance of Publisher and Editor in Chief John Fleming. The stories of companies dedicated to serving as beacons of hope and opportunity through direct selling throughout the world are captivating.

Until next time, I wish you and your teams a holiday season filled with joy.

It’s what direct sellers do, too—never look down. The direct selling industry is an industry comprising people who seek to achieve things never thought possible, scaling new heights, whether reaching inside oneself to achieve personal goals or driving a company toward what is considered the Mount Everest in direct selling, the $1 billion summit.

But like Hillary, only a few direct selling companies have managed to reach that elite status. In the 159-year history of direct selling in the United States, Avon was the first to achieve the feat in 1972. Amway followed in 1980. In 1996, Mary Kay Inc. and Tupperware both reached $1 billion. In 2004, Nu Skin and Herbalife joined the group. But another nine years passed before the next company, Ambit Energy, reached $1 billion in sales. Many companies are turned back in their efforts to reach that summit. But why? What makes it so difficult?

The simple answer is that growing a company to such an extraordinary level brings with it new challenges, and, like experienced climbers, extraordinary companies know to stop when the footing gets treacherous, even if the summit is close. Because it is an industry focused on people, direct selling companies understand that the welfare of the entire team is more important than putting up numbers. One tragic misstep and the whole team could come tumbling down.

Orville Thompson, CEO of Scentsy and a former chairman of the U.S. Direct Selling Association, once analogized direct selling and the quest to reach $1 billion to scaling Borah Peak in Idaho. At 12,668 feet, Borah Peak, or Mount Borah, is the highest mountain in the state and among the 100 highest summits in the Rocky Mountains. The most popular route to the top of Borah Peak follows the southwest ridge, ascending 5,262 vertical feet from the trailhead in a little more than 3.5 miles. Just prior to reaching the top, climbers encounter Chicken Out Ridge, a thin ridge of rock with steep slopes so intimidating that many abort their summit attempt.

For those chasing after the $1 billion summit in direct selling, the biggest challenge, says Thompson, is simply finding the right path to follow, those “smooth areas worn down by countless others who have blazed trails.” When they reach that direct selling version of Chicken Out Ridge, they must “challenge their skills and test their fears” in the face of new obstacles.

Despite the risks, more companies than ever appear to be chasing the summit. Direct Selling News research has identified 13 U.S. companies with net sales at or approaching the $500 million to $1 billion range and experiencing strong growth. Having as many companies on their way to the $1 billion summit as there are currently at the peak is a testament to the strength of the channel. Here is a closer look at the contenders:

On the Summit Push

ACN
In 2011 ACN posted $550 million in sales, down from the previous year’s $553 million. However, the company came back strong the past two years, achieving $582 million in 2012—a 5.8 percent increase—and $700 million in 2013—a 20.2 percent increase. This June, the telecommunications and essential services company launched in Mexico, the seventh-largest direct selling country and the company’s 24th market.

Stream Energy/Ignite
Stream Energy/Ignite has been camped near the billion-dollar summit for the past four years, breaking the $900 million ceiling in 2010. After two years of down sales, the company came back strong in 2013 with $27 million over the previous year—a 3.2 percent increase—putting it at $867 million. The company has seen continued growth, particularly in Hispanic markets, and has significant expectations for company growth across the board in 2014 and beyond as it diversifies its service offerings, allowing it to sell nationwide.

Thirty-One Gifts
Of the 13 companies, only Thirty-One Gifts uses the party plan method of selling, joining Mary Kay and Tupperware as the only companies in the Top 17 of the Global 100 ranking that employ this sales approach. What makes that especially interesting is that, according to the U.S. Direct Selling Association, the party plan method of selling has decreased 4 percent in each of the past two years, going from a high of 31 percent in 2011 to just 23 percent in 2013. The person-to-person method, on the other hand, accounted for two-thirds of sales in 2013, according to the DSA.

Thirty-One also has made one of the fastest ascents in recent years. The company posted sales of $100 million in 2010 and then climbed to $482 million in 2011, a 382 percent increase. Sales continued to rise in 2012—a 48.9 percent increase to $718 million. In 2013, Thirty-One achieved a 6.2 percent increase, ending the year at $763 million. Its four-year growth rate: 663 percent.

USANA
USANA, which surpassed $100 million in its first six years, has been the steadiest climber in the group over the past few years. It has maintained an average of $67 million in sales growth annually for the past three years—ranging from a 10.6 percent to 12.5 percent increase—to bring it to $718 million. The company reported $182.4 million in sales for the first quarter of 2014, a 7.9 percent increase over the prior year; second quarter results saw a 0.4 percent decrease, with $188.3 million compared to $189.1 million in 2013; and the third quarter saw record sales of $191.9 million, a 10.5 percent increase over the prior-year period of $173.7 million. For the first half of 2014, USANA generated sales and customer growth in nearly every market in which it operates. Strong growth was seen particularly in Mainland China, the Philippines, Singapore and Mexico.

Expectations are that the wellness industry in particular will continue to thrive in the coming years. In a Sept. 29 article on the health and wellness industry’s global performance, Euromonitor International reported that the United States was leading all countries in 2014 with more than $160 billion in sales. The global industry is expected to reach $1 trillion by … Click here to read the rest of the story

Direct selling companies are realizing that cause marketing can make a big difference in the bottom line.

The images, all too real for some, are seared into our minds—a tiny hand tightly gripping a donated bear at Christmas; the homeless mom tucked safely in a local shelter with her two children as the first winter chill hits; the newly jobless dad struggling to keep the lights on for his family. These are the reasons we give. These are the people who walk the thin line between have and have-not every day. The majority of us are fortunate to never be in the same position… and so we are thankful, and we give to ease the plight of others.

In fact, we are truly a charitable nation. According to Bill Clinton in Giving, “About 70 percent of American households, and increasing numbers of people around the world, give some money away every year.” As the recession and our subsequent financial woes linger on, the need to reach out to others will become even greater. Some, like Clinton, believe it is our responsibility, no matter what our circumstances, to take care of our neighbor: “We all live in an interdependent world in which our survival depends upon an understanding that our common humanity is more important than our interesting and inevitable differences, and that everyone matters.”

Experts have noted a rise in cause participation and have ventured to call it a societal trend. Everywhere you turn, companies and individuals alike are finding creative ways to do their part. It seems people yearn to have a cause that motivates them, something that helps them find a deeper spiritual connection with the world around them. It really doesn’t matter whether we give of our money, our time or both; the notion is that, in the process, we will all be better off.

‘Cause It’s Good

In the world of business, cause marketing is huge. Or it can be. The savviest among companies in corporate America often use cause marketing as leverage to widen the gap between them and their competitors. Their philanthropic ventures, in turn, become one more way for them to gain recognition and increase brand awareness in a highly competitive market.

“Passionate people gravitate to direct selling. The industry is filled with people who want to make the world a better place.”
—Kevin Guest, Chief Marketing, USANA

The concern of critics, however, is that there is an “icky-factor” to promoting (read: using) good deeds to get ahead in business. It can be considered bragging or boasting—i.e., “Buy from us. After all, look how good we are.” The underlying assumption is that the motivation to help others is not for the greater good but instead to help yourself more. And in some cases, that may be true. Then again, if people are being helped, does it really matter what prompted it?

While there may not be a consensus anytime soon, it is interesting to note that, as with just about every other aspect of business, direct sellers, of course, are not only unique in the way they go about their charitable endeavors, but also in the way they get the word out about the good works being done.

The Direct Selling Difference

At first glance, it is apparent that direct selling companies are driven by their dedication to help others. Across the board, there is an eagerness to help that permeates the entire industry. “It seems to me that passionate people gravitate to direct selling,” says Kevin Guest, Chief Marketing Officer at USANA. “The industry is filled with good, giving, caring people who want to make the world a better place.”

“Our entire business is about helping others. People become successful in this industry when they help other people reach their goals.”
—Kevin Guest

In all actuality, cause participation is a perfect fit for the direct selling industry. If you think about it, charity is inherent in the business model. “Our entire business is about helping others,” Guest says. “The reason people become successful in this industry is that they help other people reach their goals. So it seems only natural to me that altruism would spill over into other aspects of their lives as well.”

Echoing those sentiments is Curt Waisath, Founder of Gold Canyon. “We have a lot of demonstrators who are passionate about helping others,” says Waisath, whose Prayer Child Foundation reaches out to families in crisis. “We are nearing $2 million in small donations to children and their families across the country since we started a decade ago.”

For their part, party plan company Celebrating Home has partnered with the Make-A-Wish Foundation, and they have earned roughly $300,000 for the organization so far, quadrupling their expectations. “Our philanthropy dovetails nicely with the industry’s mission to improve the lives of individuals and to bring families together,” says Heather Chastain, President of Celebrating Home. “A natural extension of that mission is to help those in need in our communities.”
For Vemma Founder and CEO BK Boreyko, the difference is in the approach. “The nature of network marketing lends itself to this type of involvement,” Boreyko says. “We tell stories when we introduce people to our products and our business opportunity. It’s a little tougher for corporate America to compete with that.”

Doing the Right Thing

There are many ways that companies reach out to help their fellow man. In fact, the act of making a difference can come in all shapes and sizes, depending on the individual company. Some choose to donate a portion of their products. Others contribute their money and time to a charitable cause. For still others, it’s a combination of all three. The key, for most, is to align with a charity that suits their particular culture.

“We comprise a diverse community of distributors, so for us, one cause doesn’t fit all,” says Ryan Blair, Founder and CEO of ViSalus. “Instead, we help out locally, wherever our distributors are located.” Their Body by Vi Community Challenge launched last November with a goal to purchase 100,000 meals for local food pantries and Boys & Girls Clubs, wherever their distributors see a need. “This project has exceeded my wildest dreams,” Blair says. “It aligns with the absolute core message to our field, so it is one that really resonates with them.”

“It raises the profile of our individual distributors within the community—increases their social capital.”
—Ryan Blair

USANA chose to partner with the Children’s Hunger Fund, which is a perfect match to their mission. “We are ensuring that children get proper nutrition by donating our Usanimals vitamins to children in Ukraine, Romania and Mexico, among other places,” Guest says. “The program attaches our associates on an emotional level to something other than building a business. It shows a deeper value to our company.”

MonaVie has linked their charity to reinvesting in the area that has provided them with so much. “The MORE Project helps to improve the living conditions for impoverished families in Brazil,” says Julie Jenkins, Public Relations Manager at MonaVie. “We felt a great duty to give back to the country and its people who have given us the açai berry—and whose culture has so greatly influenced the making of the company. Our partnership with the MORE Project is not so much about helping our business, but about giving back. When you are blessed, you are obligated to become a blessing.”

It doesn’t seem to matter whether the charity is right next door or a world away; people are just happy to help out. “We have helped to build homes and provide education for people in the Philippines displaced by poverty and war,” says Keith Peterson, President of the Saladmaster division of Regal Ware Worldwide. “While we can’t tie a statistic to the impact on recruiting and retention, we have gotten feedback that our people are proud to belong to an organization that is dedicated to supporting this initiative. And we believe people stay in the business and feel good about introducing their friends and family to the opportunity because they are proud to be a Saladmaster representative.”

When it came time for Take Shape for Life to decide on a charity, the American Heart Association made the most sense. “We are helping people get healthy, and our affiliation with the AHA gives our people a greater sense of purpose,” says CEO Mike McDevitt. “In addition, we are helping to build awareness and participation for a cause outside of our own.”

Vemma had a unique approach in that they designed an entire product around a charitable cause. “When we first talked about the Next Helping Now Project—that we would wrap a giving program around a product for kids—where we would not make money on the product at all, the senior staff thought it was crazy, but they were behind me 100 percent,” Boreyko says. “And it has paid off in ways we never expected.”

In Vemma’s case, the charity has literally taken on a life of its own. “When we designed Next with some of the top medical minds in the country, it was primarily going to be something we could give our own kids,” Boreyko says. “At this point, the product and the charity have transformed our entire company. It’s funny; it took us five years to get to this point, but it’s now almost the whole reason we exist.”

Bottom Line Bonuses

So the multimillion-dollar question is: Does cause marketing make a difference to a company’s bottom line? Is there a direct, measurable correlation between a company’s philanthropic ventures and an increase in recruitment and retention numbers? The convoluted answer is yes, probably, but it is hard to tell for sure.

“I don’t think that our causes make a huge impact in sponsoring, but it helps,” says Gold Canyon’s Waisath. “Where I see it really makes a difference is retention. Our demonstrators really own this program. When they get involved and see how big an impact they can have on someone’s life, they want to help out again and again.”

The truth is, there really is no way to measure the benefits, because there is no proven connection between a company’s philanthropy and their recruitment and retention numbers. However, most executives will admit there is an intangible benefit, nonetheless. “From an entrepreneurial perspective, it raises the profile of our individual distributor within the community—increases their social capital—and spreads the word about ViSalus and all the good we’re doing,” Blair says.

Some companies are very careful to not let it appear they are using causes to their own advantage. “Although MonaVie believes that one can do well in business by doing good for others, we do not believe that giving programs should be used for recruiting purposes,” Jenkins says. “Our program is not a gimmick or a marketing tool. It is there to help children and those who cannot help themselves. We are proud if potential distributors or distributors are inspired to join us in giving, but we do it because it is in our hearts and a part of our mission.”

As uneasy as it may make some people, charitable involvement can be an important recruiting tool. “Although it wasn’t designed for that, it has played a role in helping us to attract more people to Vemma,” Boreyko says. “This program was designed to help kids get the nourishment they need. But a by-product has been that people want to be associated with the good things we are doing and to help do their part.” The momentum continues to build for Vemma. The Next Helping Now Project has gained the attention of some über-famous A-list celebrities, who want to get involved and help take the program to the next level.

But, regardless of the recognition his company may or may not gain, Boreyko really considers benevolent works to be his responsibility—an extension of his job as a conscientious leader. “My job as the founder of Vemma is to create an environment for people to grow,” Boreyko says. “That means I need to help them grow their business, naturally, but I also feel the responsibility to help them grow as people as well.”

“Our causes help to shape people’s ‘whys.’ ”
—Ryan Blair

One of the most important assets for USANA is the value of building trust with their distributor base. “Efforts like ours with the Children’s Hunger Fund increase trust,” Guest says. “Our No. 1 objective with our philanthropy is not to recruit. We do it because it is the right thing to do. But a result seems to be that our numbers have increased.”

At Gold Canyon, as the field takes ownership of the project, it becomes a powerful thing. “The demonstrators’ involvement in this charity project ties them to our business, their own business and the outside world as well,” Waisath says. “It empowers them to help others in need. We don’t get that opportunity very often.”

While they don’t use their initiatives, per se, Chastain admits that Celebrating Home’s charitable endeavors do indeed help with both recruitment and retention. “This is a very tangible way to express your ideals and values,” Chastain says. “Why do people stay with an organization? Because it is meeting their needs. It creates another touch point with our designers that helps build our brand. It helps create a business that people want to be a part of, and basically, it’s another reason for them to say yes.”

Establishing a return on investment for these causes is not an easy thing to do. “You just never know when it may give your company the added boost it needs,” says Take Shape for Life’s McDevitt. “If a smaller company doesn’t have brand awareness, then affiliation with a particular cause may help them gain that distinction.” Boreyko has seen that same effect with Vemma—their cause marketing has played the role of brand elevator. “People are becoming fiercely loyal to our brand because of this program,” Boreyko says. “And people think differently about Vemma as a whole because of what we’re doing to help kids.”

The bottom line is that, innately, people want to belong to something bigger than themselves. “At ViSalus, we do consider it a tool of sorts,” Blair says. “Everyone’s selling something. If you stand for a cause and stand for helping someone, it helps to differentiate you from the crowd.”

Right from the start, the team of founders at ViSalus set out to create a company that was about more than just profits. The spirit of helping others is a thread that has run through the company from Day One. “Our causes help to shape people’s ‘whys,’ ” Blair says. “Above and beyond running their ViSalus business, our distributors host drives and events to help raise money to send our meal-replacement products to children. We have had overwhelming responses from people that their involvement has made a significant impact on their lives.”

Suffice it to say that many people are missing a mission behind what they do. When you include them in a mission, it becomes almost evangelistic. And you can’t put a price on that. “To be a part of an organization that has a mission you believe in has a unifying effect for the field leaders,” Boreyko says. “If someone is just joining a company for the money, then they’ll jump ship for the next opportunity that comes along that promises more money. But if they join because of the good they can accomplish, that builds loyalty, and they’ll be more likely to stay.”

Cause Marketing by the Numbers

Cone is a strategy and communications organization that for nearly 30 years has been working with the likes of Avon and the American Heart Association to help them create effective cause initiatives to increase brand awareness and loyalty. For the past 15 years, the group has been studying the trends in cause marketing and has come up with some surprising results.

Cause affiliation leads to high brand recall: When presented a list, 61 – 96 percent of participants were able to state the name of the company associated with the cause based on one in- magazine and one in-store exposure.

18- to 24-year-old millennials are more receptive to cause marketing: 51 percent have bought a cause-related product or service in the last year.

79 percent of Americans would be likely to switch from one brand to a comparable one that is associated with a good cause.

52 percent of Americans feel companies should maintain their level of financial support of social and environmental causes and nonprofit organizations.

85 percent of Americans say that they have a more positive image of a product or company when it supports a cause they care about.

According to Cone’s 2008 study, “Leadership companies today approach their support of social or environmental issues as a way to demonstrate their values and responsible practices in action. As business becomes accountable to a variety of stakeholders within a highly transparent society, aligning with a cause has become an important and visible part of a company’s corporate responsibility efforts. Increasingly, companies are integrating their cause commitments into their business operations and product development to ensure they are aligned and each is reflective of the company’s core values, mission, principles and policies.”

USANA Health Sciences Inc. has announced the promotion of three key executives who have been crucial to the global nutritional company’s ongoing success. Jim Brown, Douglas Braun and Dan Whitney will now serve as Chief Production Officer (CPO), Chief Marketing Officer (CMO) and Vice President of Ethics and Market Expansion, respectively.

With nearly 20 years of experience in operations management, Jim Brown has been with USANA for more than six years, implementing critical improvements to the company’s manufacturing and quality control as its Vice President of Global Operations. As CPO, Brown will continue to maintain USANA’s manufacturing reputation and oversee the production of safe, high-quality nutritional products.

Douglas Braun, former Vice President of Marketing, will now serve as USANA’s CMO overseeing the company’s marketing, associate recognition, creative services and studio production departments. A veteran of the direct selling industry, Braun has led the charge on several key marketing campaigns that have poised USANA for future growth.

As Director of Compliance for USANA, Dan Whitney was integral to USANA’s recent successful entrance into Thailand, France and Belgium. As the company’s new Vice President of Ethics and Market Expansion, Whitney will leverage his wealth of experience to bring USANA into a growing number of global markets.

Additionally, Kevin Guest has been named President of the Americas and Europe and will be taking on additional responsibilities to secure greater strategic market share for USANA throughout Europe.

Chief Communications Officer Dan Macuga will now also be responsible for growing USANA in North America by absorbing the company’s North American field development department.

USANA Health Sciences develops and manufactures high-quality nutritional, personal care, energy, and weight-management products that are sold directly to preferred customers and associates in 18 international markets.